Suspension of performance in construction contracts - Revision history

Designing Buildings at 12:59, 8 February 2021

2021-02-08T12:59:53Z

← Older revision		Revision as of 12:59, 8 February 2021
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	* BAILII: [http://www.bailii.org/ew/cases/EWHC/TCC/2009/2634.html Mayhaven Healthcare Ltd vs Bothma].		* BAILII: [http://www.bailii.org/ew/cases/EWHC/TCC/2009/2634.html Mayhaven Healthcare Ltd vs Bothma].

−	[[Category:~~DCN_Dataset~~]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:DCN_Regulation]] [[Category:Other_legislation]] [[Category:Contracts_/_payment]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:DCN_Regulation]] [[Category:Other_legislation]] [[Category:Contracts_/_payment]]

Designing Buildings at 08:12, 9 September 2020

2020-09-09T08:12:54Z

← Older revision		Revision as of 08:12, 9 September 2020
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	* BAILII: [http://www.bailii.org/ew/cases/EWHC/TCC/2009/2634.html Mayhaven Healthcare Ltd vs Bothma].		* BAILII: [http://www.bailii.org/ew/cases/EWHC/TCC/2009/2634.html Mayhaven Healthcare Ltd vs Bothma].

−	[[Category:~~Other_legislation~~]] [[Category:DCN_Legislation]] [[Category:Contracts_/_payment]]	+	[[Category:DCN_Dataset]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:DCN_Regulation]] [[Category:Other_legislation]] [[Category:Contracts_/_payment]]

Editor at 22:14, 18 July 2019

2019-07-18T22:14:45Z

← Older revision		Revision as of 22:14, 18 July 2019
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	The Act applies to all contracts for 'construction operations', including construction contracts and consultants’ appointments.		The Act applies to all contracts for 'construction operations', including construction contracts and consultants’ appointments.

−	Following the 2011 amendments to the Act, parties have the right to suspend performance of any or all contractual obligations when a required payment of a notified sum has not be made. This includes, suspension of part or all of the works, but also other contractual obligations such as the provision of insurance. They will also be entitled to payment for reasonable costs incurred in exercising their right to suspend performance, and to have the period of suspension (and any consequential periods) disregarded when calculating the competition date.	+	Following the 2011 amendments to the Act, parties have the right to suspend performance of any or all contractual obligations when a required payment of a notified sum has not been made. This includes, suspension of part or all of the works, but also other contractual obligations such as the provision of insurance. They will also be entitled to payment for reasonable costs incurred in exercising their right to suspend performance, and to have the period of suspension (and any consequential periods) disregarded when calculating the competition date.

	The right to suspend only in relates to the contract for which payment has not been made and the party must not suspend statutory duties. Seven days notice must be given of the intention to suspend performance and the right ceases if the payment is made.		The right to suspend only in relates to the contract for which payment has not been made and the party must not suspend statutory duties. Seven days notice must be given of the intention to suspend performance and the right ceases if the payment is made.
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	The complexity of the situation means it may be necessary to obtain legal advice before suspending performance.		The complexity of the situation means it may be necessary to obtain legal advice before suspending performance.

−	~~= Find out more =~~	+	= Related articles in Designing Buildings Wiki =
−		+
−	=== Related articles in Designing Buildings Wiki ===	+

	* Breach of contract.		* Breach of contract.
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	* BAILII: [http://www.bailii.org/ew/cases/EWHC/TCC/2009/2634.html Mayhaven Healthcare Ltd vs Bothma].		* BAILII: [http://www.bailii.org/ew/cases/EWHC/TCC/2009/2634.html Mayhaven Healthcare Ltd vs Bothma].

−	[[Category:Other_legislation]] [[Category:Contracts_/_payment]]	+	[[Category:Other_legislation]] [[Category:DCN_Legislation]] [[Category:Contracts_/_payment]]

Editor at 13:36, 31 August 2018

2018-08-31T13:36:19Z

← Older revision		Revision as of 13:36, 31 August 2018
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	* Housing Grants, Construction and Regeneration Act .		* Housing Grants, Construction and Regeneration Act .
	* Insolvency.		* Insolvency.
		+	* Performance.
	* Termination.		* Termination.

Editor at 12:35, 19 January 2018

2018-01-19T12:35:30Z

← Older revision		Revision as of 12:35, 19 January 2018
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	The right to suspend only in relates to the contract for which payment has not been made and the party must not suspend statutory duties. Seven days notice must be given of the intention to suspend performance and the right ceases if the payment is made.		The right to suspend only in relates to the contract for which payment has not been made and the party must not suspend statutory duties. Seven days notice must be given of the intention to suspend performance and the right ceases if the payment is made.

−	In some forms of construction contract, such as JCT contracts, there are also express terms allowing suspension for failure to make a payment by the due date. There may also be other circumstances in which the contract allow suspension of the works. Clauses dealing with suspension tend to be similar in nature to those dealing with termination. In addition, there may be a right to terminate at end of the period of suspension or if the suspension becomes prolonged, with no prospect of re-commencing. Suspension may be permitted due to a breach of contract by the employer, the employer becoming insolvent, as a result of force majeure, or by agreement between the parties, for example if circumstances make proceeding with the works temporarily impossible, if there are difficulties in determining how to proceed with a project or if the client has difficulty in raising funds to pay for the work to proceed at the speed anticipated by the contract.	+	In some forms of construction contract, such as JCT contracts, there are also express terms allowing suspension for failure to make a payment by the due date. There may also be other circumstances in which the contract allow suspension of the works. Clauses dealing with suspension tend to be similar in nature to those dealing with termination. In addition, there may be a right to terminate at end of the period of suspension or if the suspension becomes prolonged, with no prospect of re-commencing.
		+
		+	Suspension may be permitted due to a breach of contract by the employer, the employer becoming insolvent, as a result of force majeure, or by agreement between the parties, for example if circumstances make proceeding with the works temporarily impossible, if there are difficulties in determining how to proceed with a project or if the client has difficulty in raising funds to pay for the work to proceed at the speed anticipated by the contract.

	The provisions of extension of time clauses also allow the construction period to be extended where there are delays that are not the contractor's fault. For more information, see extension of time.		The provisions of extension of time clauses also allow the construction period to be extended where there are delays that are not the contractor's fault. For more information, see extension of time.
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	* Extension of time.		* Extension of time.
	* Force majeure.		* Force majeure.
		+	* Frustration.
	* Housing Grants, Construction and Regeneration Act .		* Housing Grants, Construction and Regeneration Act .
	* Insolvency.		* Insolvency.

81.140.76.38 at 07:42, 15 August 2017

2017-08-15T07:42:26Z

← Older revision		Revision as of 07:42, 15 August 2017
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−
	Construction contracts will generally require that the contractor progresses the works regularly and diligently. There is no common law right that allows suspension of performance of the works, however, there are contractual and statutory provisions under which the contractor may suspend performance.		Construction contracts will generally require that the contractor progresses the works regularly and diligently. There is no common law right that allows suspension of performance of the works, however, there are contractual and statutory provisions under which the contractor may suspend performance.

	The Housing Grants, Construction and Regeneration Act 1996 is intended to ensure (amongst other things) that payments are made promptly throughout the supply chain. Its provisions include:		The Housing Grants, Construction and Regeneration Act 1996 is intended to ensure (amongst other things) that payments are made promptly throughout the supply chain. Its provisions include:
−	*The right to be paid in interim, periodic or stage payments.~~<br/>~~	+
−	*The right to be informed of the amount due, or any amounts to be withheld.~~<br/>~~	+	* The right to be paid in interim, periodic or stage payments.
−	*The right to suspend performance for non-payment.	+	* The right to be informed of the amount due, or any amounts to be withheld.
		+	* The right to suspend performance for non-payment.

	The Act applies to all contracts for 'construction operations', including construction contracts and consultants’ appointments.		The Act applies to all contracts for 'construction operations', including construction contracts and consultants’ appointments.
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	The provisions of extension of time clauses also allow the construction period to be extended where there are delays that are not the contractor's fault. For more information, see extension of time.		The provisions of extension of time clauses also allow the construction period to be extended where there are delays that are not the contractor's fault. For more information, see extension of time.

−	It is important to be certain that the circumstances do allow the works to be suspended, and that the correct procedures are being followed. If the employer has exercised some right under the contract to withhold or reduce payment, then wrongfully suspending the works could possibly amount to a repudiatory ~~beach~~, where one party behaves in such a way that it indicates it no longer intends to accept its obligations under the contract, allowing the innocent party to terminate the contract and to sue for damages. However, in Mayhaven Healthcare Ltd vs Bothma it was found that this is not automatically the case.	+	It is important to be certain that the circumstances do allow the works to be suspended, and that the correct procedures are being followed. If the employer has exercised some right under the contract to withhold or reduce payment, then wrongfully suspending the works could possibly amount to a repudiatory breach, where one party behaves in such a way that it indicates it no longer intends to accept its obligations under the contract, allowing the innocent party to terminate the contract and to sue for damages. However, in Mayhaven Healthcare Ltd vs Bothma it was found that this is not automatically the case.

	The complexity of the situation means it may be necessary to obtain legal advice before suspending performance.		The complexity of the situation means it may be necessary to obtain legal advice before suspending performance.
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	=== Related articles in Designing Buildings Wiki ===		=== Related articles in Designing Buildings Wiki ===
−	*Breach of contract.	+
−	*Extension of time.	+	* Breach of contract.
−	*Force majeure.~~<br/>~~	+	* Extension of time.
−	*Housing Grants, Construction and Regeneration Act .	+	* Force majeure.
−	*Insolvency.	+	* Housing Grants, Construction and Regeneration Act .
−	*Termination.	+	* Insolvency.
		+	* Termination.

	=== External references ===		=== External references ===
−	*BAILII: [http://www.bailii.org/ew/cases/EWHC/TCC/2009/2634.html Mayhaven Healthcare Ltd vs Bothma].

−	[~~[Category~~:~~Contracts_~~/~~_payment]~~]	+	* BAILII: [http://www.bailii.org/ew/cases/EWHC/TCC/2009/2634.html Mayhaven Healthcare Ltd vs Bothma].
−	[[Category:Other_legislation]]	+
		+	[[Category:Other_legislation]] [[Category:Contracts_/_payment]]

Designing Buildings: moved Suspension of performance to Suspension of performance in construction contracts

2014-11-28T07:57:43Z

moved Suspension of performance to Suspension of performance in construction contracts

← Older revision

Revision as of 07:57, 28 November 2014

Designing Buildings at 08:24, 17 January 2014

2014-01-17T08:24:42Z

← Older revision		Revision as of 08:24, 17 January 2014
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	The right to suspend only in relates to the contract for which payment has not been made and the party must not suspend statutory duties. Seven days notice must be given of the intention to suspend performance and the right ceases if the payment is made.		The right to suspend only in relates to the contract for which payment has not been made and the party must not suspend statutory duties. Seven days notice must be given of the intention to suspend performance and the right ceases if the payment is made.

−	In some forms of construction contract, such as JCT contracts, there are also express terms allowing suspension for failure to make a payment by the due date. There may also be other circumstances in which the contract allow suspension of the works. Clauses dealing with suspension tend to be similar in nature to those dealing with termination. In addition, there may be a right to terminate at end of the period of suspension or if the suspension becomes prolonged, with no prospect of re-commencing. Suspension may be permitted due to a breach of contract by the employer, the employer becoming insolvent, as a result of force majeure, or by agreement between the parties, for example if circumstances make proceeding with the works temporarily impossible or if there are difficulties in determining how to proceed with a project.	+	In some forms of construction contract, such as JCT contracts, there are also express terms allowing suspension for failure to make a payment by the due date. There may also be other circumstances in which the contract allow suspension of the works. Clauses dealing with suspension tend to be similar in nature to those dealing with termination. In addition, there may be a right to terminate at end of the period of suspension or if the suspension becomes prolonged, with no prospect of re-commencing. Suspension may be permitted due to a breach of contract by the employer, the employer becoming insolvent, as a result of force majeure, or by agreement between the parties, for example if circumstances make proceeding with the works temporarily impossible, if there are difficulties in determining how to proceed with a project or if the client has difficulty in raising funds to pay for the work to proceed at the speed anticipated by the contract.

	The provisions of extension of time clauses also allow the construction period to be extended where there are delays that are not the contractor's fault. For more information, see extension of time.		The provisions of extension of time clauses also allow the construction period to be extended where there are delays that are not the contractor's fault. For more information, see extension of time.

Designing Buildings at 16:36, 16 January 2014

2014-01-16T16:36:29Z

Designing Buildings: Created page with " Construction contracts will generally require that the contractor progresses the works regularly and diligently. There is no common law right that allows suspension of performan..."

2014-01-16T16:27:14Z

Created page with " Construction contracts will generally require that the contractor progresses the works regularly and diligently. There is no common law right that allows suspension of performan..."

New page

Construction contracts will generally require that the contractor progresses the works regularly and diligently. There is no common law right that allows suspension of performance of the works, however, there are be contractual and statutory provisions under which the contractor may suspend performance.

Section 112 of the Housing Grants, Construction and Regeneration Act 1996 is intended to ensure that payments are made promptly throughout the supply chain and that disputes are resolved swiftly. Its provisions include:
*The right to be paid in interim, periodic or stage payments.<br/>
*The right to be informed of the amount due, or any amounts to be withheld.<br/>
*The right to suspend performance for non-payment.

The Act applies to all contracts for 'construction operations' (including construction contracts and consultants’ appointments).

Following the 2011 amendments to the Act, parties have the right to suspend performance of any or all contractual obligations arises when a required payment of a notified sum has not be made. This includes, suspension of part or all of the works, but also other contractual obligations such as the provision of insurance. They will also be entitle to payment for reasonable costs incurred in exercising their right to suspend performance, and to have the period of suspension (and any consequential periods) disregarded when calculating the competition date.

The right to suspend only in relates to the contract to which the payment relates and the contractor must not suspend statutory duties. Seven days notice must be given of the intention to suspend performance and the right ceases if the payment is made.

In some forms of contract, such as JCT contracts, there are also express terms allowing suspension for failure to make a payment by the due date. There may also be other circumstances in which the contract allow suspension of the works. Clauses dealing with suspension tend to be similar in nature to those dealing with termination. In addition, there may be a right to terminate at end of the period of suspension or if the suspension becomes prolonged, with no prospect of re-commencing. Suspension may be permitted dues to a breach of contract by the employer, the employer becoming insolvent, as a result of force majeure, or by agreement between the parties, for example if circumstances make proceeding with the works temporarily impossible or if there are difficulties in determining how to proceed with a project.

The provisions of extension of time clauses also allow the construction period to be extended where there are delays that are not the contractor's fault. This is described as an extension of time

It is important to be certain that the circumstances do allow the works to be suspended, and that the correct procedures are being followed. It may be necessary to obtain legal advice.

If the employer has exercised some right under the contract to withhold or reduce payment, then wrongfully suspending the works could possibly amount to a repudiatory beach, where one party behaves in such a way that it indicates it no longer intends to accept its obligations under the contract, allowing the innocent party to terminate the contract and to sue for damages. However, in Mayhaven Healthcare Ltd vs Bothma it was found that this is not automatically the case.

= Find out more =

=== Related articles in Designing Buildings Wiki ===
*Breach of contract.
*Extension of time.
*Force majeure.<br/>
*Housing Grants, Construction and Regeneration Act .
*Insolvency.
*Termination.

=== External references ===
*BAILII: [http://www.bailii.org/ew/cases/EWHC/TCC/2009/2634.html Mayhaven Healthcare Ltd vs Bothma].

[[Category:Contracts_/_payment]]
[[Category:Other_legislation]]

← Older revision		Revision as of 16:36, 16 January 2014
Line 1:		Line 1:

−	Construction contracts will generally require that the contractor progresses the works regularly and diligently. There is no common law right that allows suspension of performance of the works, however, there are be contractual and statutory provisions under which the contractor may suspend performance.	+	Construction contracts will generally require that the contractor progresses the works regularly and diligently. There is no common law right that allows suspension of performance of the works, however, there are contractual and statutory provisions under which the contractor may suspend performance.

−	~~Section 112 of the~~ Housing Grants, Construction and Regeneration Act 1996 is intended to ensure that payments are made promptly throughout the supply chain ~~and that disputes are resolved swiftly~~. Its provisions include:	+	The Housing Grants, Construction and Regeneration Act 1996 is intended to ensure (amongst other things) that payments are made promptly throughout the supply chain. Its provisions include:
	*The right to be paid in interim, periodic or stage payments.<br/>		*The right to be paid in interim, periodic or stage payments.<br/>
	*The right to be informed of the amount due, or any amounts to be withheld.<br/>		*The right to be informed of the amount due, or any amounts to be withheld.<br/>
	*The right to suspend performance for non-payment.		*The right to suspend performance for non-payment.

−	The Act applies to all contracts for 'construction operations' (including construction contracts and consultants’ appointments).	+	The Act applies to all contracts for 'construction operations', including construction contracts and consultants’ appointments.

−	Following the 2011 amendments to the Act, parties have the right to suspend performance of any or all contractual obligations ~~arises~~ when a required payment of a notified sum has not be made. This includes, suspension of part or all of the works, but also other contractual obligations such as the provision of insurance. They will also be ~~entitle~~ to payment for reasonable costs incurred in exercising their right to suspend performance, and to have the period of suspension (and any consequential periods) disregarded when calculating the competition date.	+	Following the 2011 amendments to the Act, parties have the right to suspend performance of any or all contractual obligations when a required payment of a notified sum has not be made. This includes, suspension of part or all of the works, but also other contractual obligations such as the provision of insurance. They will also be entitled to payment for reasonable costs incurred in exercising their right to suspend performance, and to have the period of suspension (and any consequential periods) disregarded when calculating the competition date.

−	The right to suspend only in relates to the contract to which ~~the~~ payment ~~relates~~ and the ~~contractor~~ must not suspend statutory duties. Seven days notice must be given of the intention to suspend performance and the right ceases if the payment is made.	+	The right to suspend only in relates to the contract for which payment has not been made and the party must not suspend statutory duties. Seven days notice must be given of the intention to suspend performance and the right ceases if the payment is made.

−	In some forms of contract, such as JCT contracts, there are also express terms allowing suspension for failure to make a payment by the due date. There may also be other circumstances in which the contract allow suspension of the works. Clauses dealing with suspension tend to be similar in nature to those dealing with termination. In addition, there may be a right to terminate at end of the period of suspension or if the suspension becomes prolonged, with no prospect of re-commencing. Suspension may be permitted ~~dues~~ to a breach of contract by the employer, the employer becoming insolvent, as a result of force majeure, or by agreement between the parties, for example if circumstances make proceeding with the works temporarily impossible or if there are difficulties in determining how to proceed with a project.	+	In some forms of construction contract, such as JCT contracts, there are also express terms allowing suspension for failure to make a payment by the due date. There may also be other circumstances in which the contract allow suspension of the works. Clauses dealing with suspension tend to be similar in nature to those dealing with termination. In addition, there may be a right to terminate at end of the period of suspension or if the suspension becomes prolonged, with no prospect of re-commencing. Suspension may be permitted due to a breach of contract by the employer, the employer becoming insolvent, as a result of force majeure, or by agreement between the parties, for example if circumstances make proceeding with the works temporarily impossible or if there are difficulties in determining how to proceed with a project.

−	The provisions of extension of time clauses also allow the construction period to be extended where there are delays that are not the contractor's fault. ~~This is described as an~~ extension of time	+	The provisions of extension of time clauses also allow the construction period to be extended where there are delays that are not the contractor's fault. For more information, see extension of time.

−	It is important to be certain that the circumstances do allow the works to be suspended, and that the correct procedures are being followed. ~~It may be necessary~~ to ~~obtain legal advice~~.	+	It is important to be certain that the circumstances do allow the works to be suspended, and that the correct procedures are being followed. If the employer has exercised some right under the contract to withhold or reduce payment, then wrongfully suspending the works could possibly amount to a repudiatory beach, where one party behaves in such a way that it indicates it no longer intends to accept its obligations under the contract, allowing the innocent party to terminate the contract and to sue for damages. However, in Mayhaven Healthcare Ltd vs Bothma it was found that this is not automatically the case.

−	If the ~~employer has exercised some right under the contract~~ to ~~withhold or reduce payment, then wrongfully~~ suspending the works could possibly amount to a repudiatory beach, where one party behaves in such a way that it indicates it no longer intends to accept its obligations under the contract, allowing the innocent party to terminate the contract and to sue for damages. However, in Mayhaven Healthcare Ltd vs Bothma it was found that this is not automatically the case.	+	The complexity of the situation means it may be necessary to obtain legal advice before suspending performance.

	= Find out more =		= Find out more =